Evergreen Reporter

Lori Isabell Morgan, 35, of Greenbelt, Maryland, was arrested on June 12 on an indictment charging her with defrauding the U.S. Government of nearly $150,000 in Economic Injury Disaster Loan (EIDL) funds intended to aid businesses facing economic hardship due to the COVID-19 pandemic.

The indictment, which includes six counts of wire fraud, was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division, and Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration - Office of the Inspector General.

Morgan made her initial court appearance on June 12 before the Honorable Zia M. Faruqui in U.S. District Court in the District of Columbia.

According to court documents, Morgan allegedly submitted an EIDL application to the Small Business Administration (SBA), claiming to own 100% of an “agriculture” business based out of her Washington D.C. apartment. She claimed to employ ten people and generate $7.5 million in gross revenues in 2019; however, no such business existed.

On July 8, 2020, the SBA deposited $149,900 into Morgan’s bank account. She allegedly used the money for personal expenses including paying off debts, auto repair, restaurant tabs, shopping purchases, and trips to Atlantic City and Las Vegas. By December 31, 2020, Morgan’s account balance had dwindled to $829.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted around March 2020 designed to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was through forgivable loans for small businesses via a program known as the Paycheck Protection Program (PPP).

An Economic Injury Disaster Loan (EIDL) is a loan administered by the Small Business Administration designed to assist small businesses that suffered substantial economic injury due to a declared disaster. The EIDL helps businesses meet necessary financial obligations that could have been met if not for the disaster and allows them to maintain reasonable working capital during the affected period.

The investigation into this matter was conducted by the FBI Washington Field Office. The case is being prosecuted by Assistant U.S. Attorney Christine Macey.

A criminal indictment is merely an allegation; all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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